Mortgaging with same lender - ERC.

StuMcBill

Hi,

We are currently planning on moving house, but we are still within our 5-year fixed rate mortgage, which we will be subject to an early repayment charge of almost £10K to get out of. This is fine, we accept that we are getting out of our mortgage early, so the lender I going to lose money on the deal and have to recoup their money somehow. Regardless of this, I was wondering if there was a way out of this.

We are planning on going with the same lender (Santander) for our new (substantially higher) mortgage and if we were able to sell and complete our purchase on the same day, the ERC wouldn't apply.

If we were to sell and complete within 3 months, we would have to pay the ERC, but then it would be refunded when we completed our new purchase.

However, as our new house is a new build, its unlikely to be ready within 3 months, but I just wondered if it would be possible to negotiate with them to extend the 3 months, or even reduce the amount, since we are staying with them for our mortgage. Additionally we bank with them also.

We would of course be willing to pay the ERC and have it refunded, similar to the 3 month scenario, so even if we decided to go with someone else - they would still have the money.

I realise that they are under no obligation to do this, but I just wondered if anyone had any experience trying to do anything like this?

Cheers,
Stewart

ACG

Why not stay in your current place until the property you are buying is ready?

StuMcBill

Because we’ve already sold our place as we needed to know how much we were getting for our deposit on our new place.

Thrugelmir

StuMcBill wrote: »

if it would be possible to negotiate with them to extend the 3 months, or even reduce the amount, since we are staying with them for our mortgage. Additionally we bank with them also.

The internal policy will be set at board level. There's no negotiation. As it will be a commercial decision.

ACG

Can you not delay completion on yours?

In short, they are not going to waive those ERCs if you go beyond the 3 months. So it could be worth trying to negotiate with the buyers to delay as long as possible and

lisyloo

You could consider offering your buyers a sweetener.
E.g. £5k for them? And you save £10k, but don!!!8217;t mess them about, it!!!8217;s a big thing for them too and presumBly they have living arrangements and timoff work planned, so be honest with them and sound them out, but respect the Fact that they!!!8217;ve got things depending on this too.

StuMcBill

Thanks for all the replies. We are going to call Santander and see if there is any chance of extending the period, I doubt there will be, but its worth a try.

Regarding offering the buyers a sweetener, good idea, but I fear that this may get messy and like you say, don't want to mess people about once they have made plans etc.

getmore4less

£10k ERC and move twice.

Does the builder do part ex.

if they do will they give you your current offer -£10k, save the extra move.